Original subtitles

Finally, let's discuss the concept of VPOC migrations, an idea that can also

used to look for potential entries.

This concept is particularly useful for intraday trading when analyzing charts

in the lower time frames.

The trading level is the VPOC of the session, and the idea is to use the

migrations that occur at that level during the session.

As mentioned above, the current VPOC level represents the agreement of both

parties as to the value of the asset.

regardless of its seasonality.

But what should be read in the event of a migration of the VPOC level?

This has been a headache for many traders as there are two different

the issue.

On the one hand, many argue that this is an unequivocal sign of the health of

the movement and therefore suggest continuity in the direction of the

On the other hand, there are many who believe that a turning point may be in

offing. The only thing that matters is that it represents an area of value in

which price has been accepted because of the high level of trade that it has

generated. The question would be to determine the significance of this value

migration, whether as a continuation or as a reversal.

On the principle that every market action must be confirmed or rejected by

subsequent reaction, the key is to assess the subsequent price action after

checkpoint migration.

Two rules of thumb can be used to interpret this.

The first is that in a trending market, we prefer VPOC migrations to have a

sense of continuation.

And the second rule of thumb is that depending on where most of the trading

takes place after the VPOC migration, the market will be more or less likely

continue or cause a reversal.

Remember that any VPOC represents market control.

If the price starts to move below the VPOC after the migration, the sentiment

that migration will be bearish.

and vice versa. A VPOC migration followed by a higher number of

closing above the level will leave us with a bullish sentiment.

In the example on the left, the market is in a bullish context on higher time

frames, and as we can see, each migration has been followed by a

the bullish move.

After the VPOC migrations, there has never been too much time before a new

begins, and most candlesticks have closed above the level during these

consolidations.

But what happens on the final VPOC migration?

After the migration, the price immediately starts trading below the

suggesting to us that the sentiment of this migration is clearly looking for a

reversal.

In the example on the right, we see something similar, but in the opposite

direction. In a bearish context at a higher level, we will look for VPOC

migrations in the session profile to generate a continuation of the move as

happens.

On the final migration, the market can no longer move in that direction and

generates the bullish reversal.

Note how after the VPOC migration, most of the price action takes place above

the level.

This footprint is key in determining what the market is most likely to do.

In short, a good way to enter the market on the intraday time frame can be to

take advantage of this VPOC migration concept by looking for an entry trigger

when the VPOC migration occurs.